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August 3, 2007
DaimlerChrysler closes transaction on transfer of majority interest in
Chrysler to Cerberus
- Dr. Dieter Zetsche, Chairman of the Board of Management of
DaimlerChrysler AG and Head of Mercedes Car Group: “Today marks a new
chapter in the history of our company.”
- Extraordinary Shareholders’ Meeting to decide on change of name on
October 4, 2007
Stuttgart - DaimlerChrysler (stock-exchange abbreviation DCX) today
completed the closing for the transfer of a majority interest in the
Chrysler Group and for the related financial services business in NAFTA to
a subsidiary of Cerberus Capital Management, L.P., a private-equity company
based in New York. A subsidiary of Cerberus takes over 80.1% in the
Chrysler Holding LLC, while DaimlerChrysler retains a 19.9% interest, as
announced in May 2007.
The effects on the financial statements of DaimlerChrysler will be
explained on August 29, 2007.
Basically, the conditions of the transaction and the economic effects have
not changed since the agreement was signed on May 14, 2007. Furthermore,
DaimlerChrysler and Cerberus have agreed to support the financing of the
majority takeover of Chrysler by Cerberus in light of highly volatile US
loan markets. Both companies will subscribe $2 billion of second lien debt
for Chrysler’s automotive business, to be drawn within 12 months.
DaimlerChrysler’s portion will be $1.5 billion. The debt will be priced at
market conditions. One year after the closing, DaimlerChrysler has the
right to sell this loan in the credit market. The maturity of this loan is
7 years.
DaimlerChrysler’s financing support is a strong sign of its overall
determination to make sure that, under the majority of Cerberus, Chrysler
has a good start as a successful stand-alone car company.
As of today, the Board of Management of DaimlerChrysler AG is reduced to
six members: Tom LaSorda, Eric Ridenour and Tom Sidlik are no longer
members. Within the Board of Management, Bodo Uebber additionally assumes
responsibility for procurement.
Due to the new corporate structure, DaimlerChrysler AG is to be renamed as
Daimler AG. The shareholders are to decide on this change at an
Extraordinary Shareholders’ Meeting in Berlin on October 4, 2007.
Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler
AG and Head of the Mercedes Car Group: “Today marks a new chapter in the
history of our company. Based on the clearly defined strategies in our
Mercedes Car Group, Truck Group, Financial Services business divisions and
for vans and buses, and our company’s healthy balance sheet, we have every
reason to move confidently into the future.”
This document contains forward-looking statements that reflect our current
views about future events. The words “anticipate,” “assume,” “believe,”
“estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should” and
similar expressions are used to identify forward-looking statements. These
statements are subject to many risks and uncertainties, including an
economic downturn or slow economic growth, especially in Europe or North
America; changes in currency exchange rates and interest rates;
introduction of competing products and possible lack of acceptance of our
products or services; competitive pressures which may limit our ability to
raise prices and reduce sales incentives; price increases in fuel, raw
materials, and precious metals; disruption of production or delivery of new
vehicles due to shortages of materials, labor strikes, or supplier
insolvencies; a decline in resale prices of used vehicles; the business
outlook of Chrysler in which we hold an equity interest, including the
ability to successfully implement its Recovery and Transformation Plan; the
business outlook for our Truck Group, which may experience a stronger than
originally expected decline in demand as a result of accelerated purchases
in 2006 made in advance of the effectiveness of stricter emission
regulations; effective implementation of cost reduction and efficiency
optimization programs, including our new management model; the business
outlook of our equity investee EADS, including the financial effects of
delays in and potentially lower volume of future aircraft deliveries;
changes in laws, regulations and government policies, particularly those
relating to vehicle emissions, fuel economy and safety, the resolution of
pending governmental investigations and the outcome of pending or
threatened future legal proceedings; and other risks and uncertainties,
some of which we describe under the heading “Risk Report” in
DaimlerChrysler’s most recent Annual Report and under the headings “Risk
Factors” and “Legal Proceedings” in DaimlerChrysler’s most recent Annual
Report on Form 20-F filed with the Securities and Exchange Commission. If
any of these risks and uncertainties materialize, or if the assumptions
underlying any of our forward-looking statements prove incorrect, then our
actual results may be materially different from those we express or imply
by such statements. We do not intend or assume any obligation to update
these forward-looking statements. Any forward-looking statement speaks only
as of the date on which it is made.
****************************************************************************************************************
You received this investor relations release because you
subscribed to this service of DaimlerChrysler AG.
If you want to unsubscribe this IR Newsletter:
http://www.daimlerchrysler.com/ir/unsubscribe
Our DaimlerChrysler Web site www.daimlerchrysler.com offers a variety of
additional information.
In the section "Investor Relations" you will find much about the
DaimlerChrysler share.
Sincerely,
DaimlerChrysler AG
Investor Relations
[email protected]
DaimlerChrysler closes transaction on transfer of majority interest in
Chrysler to Cerberus
- Dr. Dieter Zetsche, Chairman of the Board of Management of
DaimlerChrysler AG and Head of Mercedes Car Group: “Today marks a new
chapter in the history of our company.”
- Extraordinary Shareholders’ Meeting to decide on change of name on
October 4, 2007
Stuttgart - DaimlerChrysler (stock-exchange abbreviation DCX) today
completed the closing for the transfer of a majority interest in the
Chrysler Group and for the related financial services business in NAFTA to
a subsidiary of Cerberus Capital Management, L.P., a private-equity company
based in New York. A subsidiary of Cerberus takes over 80.1% in the
Chrysler Holding LLC, while DaimlerChrysler retains a 19.9% interest, as
announced in May 2007.
The effects on the financial statements of DaimlerChrysler will be
explained on August 29, 2007.
Basically, the conditions of the transaction and the economic effects have
not changed since the agreement was signed on May 14, 2007. Furthermore,
DaimlerChrysler and Cerberus have agreed to support the financing of the
majority takeover of Chrysler by Cerberus in light of highly volatile US
loan markets. Both companies will subscribe $2 billion of second lien debt
for Chrysler’s automotive business, to be drawn within 12 months.
DaimlerChrysler’s portion will be $1.5 billion. The debt will be priced at
market conditions. One year after the closing, DaimlerChrysler has the
right to sell this loan in the credit market. The maturity of this loan is
7 years.
DaimlerChrysler’s financing support is a strong sign of its overall
determination to make sure that, under the majority of Cerberus, Chrysler
has a good start as a successful stand-alone car company.
As of today, the Board of Management of DaimlerChrysler AG is reduced to
six members: Tom LaSorda, Eric Ridenour and Tom Sidlik are no longer
members. Within the Board of Management, Bodo Uebber additionally assumes
responsibility for procurement.
Due to the new corporate structure, DaimlerChrysler AG is to be renamed as
Daimler AG. The shareholders are to decide on this change at an
Extraordinary Shareholders’ Meeting in Berlin on October 4, 2007.
Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler
AG and Head of the Mercedes Car Group: “Today marks a new chapter in the
history of our company. Based on the clearly defined strategies in our
Mercedes Car Group, Truck Group, Financial Services business divisions and
for vans and buses, and our company’s healthy balance sheet, we have every
reason to move confidently into the future.”
This document contains forward-looking statements that reflect our current
views about future events. The words “anticipate,” “assume,” “believe,”
“estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should” and
similar expressions are used to identify forward-looking statements. These
statements are subject to many risks and uncertainties, including an
economic downturn or slow economic growth, especially in Europe or North
America; changes in currency exchange rates and interest rates;
introduction of competing products and possible lack of acceptance of our
products or services; competitive pressures which may limit our ability to
raise prices and reduce sales incentives; price increases in fuel, raw
materials, and precious metals; disruption of production or delivery of new
vehicles due to shortages of materials, labor strikes, or supplier
insolvencies; a decline in resale prices of used vehicles; the business
outlook of Chrysler in which we hold an equity interest, including the
ability to successfully implement its Recovery and Transformation Plan; the
business outlook for our Truck Group, which may experience a stronger than
originally expected decline in demand as a result of accelerated purchases
in 2006 made in advance of the effectiveness of stricter emission
regulations; effective implementation of cost reduction and efficiency
optimization programs, including our new management model; the business
outlook of our equity investee EADS, including the financial effects of
delays in and potentially lower volume of future aircraft deliveries;
changes in laws, regulations and government policies, particularly those
relating to vehicle emissions, fuel economy and safety, the resolution of
pending governmental investigations and the outcome of pending or
threatened future legal proceedings; and other risks and uncertainties,
some of which we describe under the heading “Risk Report” in
DaimlerChrysler’s most recent Annual Report and under the headings “Risk
Factors” and “Legal Proceedings” in DaimlerChrysler’s most recent Annual
Report on Form 20-F filed with the Securities and Exchange Commission. If
any of these risks and uncertainties materialize, or if the assumptions
underlying any of our forward-looking statements prove incorrect, then our
actual results may be materially different from those we express or imply
by such statements. We do not intend or assume any obligation to update
these forward-looking statements. Any forward-looking statement speaks only
as of the date on which it is made.
****************************************************************************************************************
You received this investor relations release because you
subscribed to this service of DaimlerChrysler AG.
If you want to unsubscribe this IR Newsletter:
http://www.daimlerchrysler.com/ir/unsubscribe
Our DaimlerChrysler Web site www.daimlerchrysler.com offers a variety of
additional information.
In the section "Investor Relations" you will find much about the
DaimlerChrysler share.
Sincerely,
DaimlerChrysler AG
Investor Relations
[email protected]
